South Africa’s Labat Africa to pay first-ever $1.4 million dividend 

Labat Africa Limited, the Johannesburg-listed investment holding company, has declared its first-ever dividend in corporate history, approving a cash payout of $1.37 million as it signals a shift from years of restructuring toward shareholder returns following a sharp earnings recovery.

Labat Africa declares maiden dividend of R22.68 million
The R22.68 million ($1.37 million) dividend, set at R0.01 per ordinary share, marks a historic milestone for Labat Africa and reflects improving financial performance across its portfolio, including contributions from operating businesses such as Classic and Ahnamu.

The payout is based on approximately 2.27 billion shares in issue and will be distributed from income reserves, in line with JSE Listings Requirements. Shareholders who are not exempt from dividend withholding tax will receive a net dividend of 0.80 cents per share after the 20% tax deduction. The company confirmed it will remain solvent and liquid after the distribution, with payment scheduled for August 3, 2026. The record date is July 31, while the last day to trade cum dividend is July 28, with shares trading ex-dividend from July 29.

Turnaround in earnings supports dividend decision
The dividend declaration follows a strong financial recovery for the year ended May 2025, where Labat Africa reported a sharp rebound in performance across key metrics.

Revenue rose more than 310% to R199.4 million ($12.11 million), up from R48.5 million ($2.95 million) a year earlier, representing a more than fourfold increase. Gross profit climbed to R117.54 million ($7.14 million) from R29.84 million ($1.81 million), reflecting improved operational efficiency across the group.

Headline earnings also recovered strongly to R60.07 million ($3.65 million), compared with a loss of R25.64 million ($1.56 million) in the prior year, while total comprehensive income rose to R131.49 million ($7.99 million) from a loss of R26.4 million (1.6 million).

Share structure expands alongside recovery
Labat Africa’s recovery came alongside a notable expansion in its share base, with total shares in issue rising to about 1.13 billion from 669 million in the prior year. The closing share price remained unchanged at R0.03, with a current market capitalisation of R45.4 million ($2.76 million).

Despite the improvement in earnings, the company continues to trade at a relatively small valuation compared with its revenue base, reflecting ongoing investor caution around sustainability and execution consistency.

Investor engagement follows strategic reset
Labat Africa was founded in 1995 by Brian van Rooyen and Victor Labat. Brian van Rooyen, a former South African rugby boss, has served as the CEO since the company’s inception. The company has operated as an investment holding company, with early involvement in government consulting and later transitioning toward technology, logistics, and, for a period, the cannabis industry.

The board described the dividend as both a recognition of operational progress and a signal of commitment to disciplined capital allocation and long-term shareholder value creation, while emphasizing that further updates on strategy execution will be communicated to the market in due course.